MoneyGab Definitions: What does ‘retirement’ mean?

I like the sound of that kind of freedom:). Getting resources then becomes the focus, I think. I don’t know much about finances yet, but I received this email today. Here’s what L Ron Hubbard thinks:

Five Ways to Get Rich

If you think about it, there are only five ways you can get rich.

1. Gamble. Buy lottery tickets or spend your vacation time in a casino trying to hit it big. Unfortunately, most people, even professional gamblers, eventually lose all their money with this method.

2. Sue somebody. Get the driver of a new Mercedes to hit you and then sue. Fall and smash your face in a jewelry store and then sue. Pretend to find a severed finger in your can of soup and then sue. Unfortunately, with this method, you can hurt yourself or wind up in jail.

3. Marry a wealthy person or inherit your money. Finding a rich person, who wants to marry you, may be difficult. Being nice to wealthy relatives until they die can take many years. In either case, you have very little control of your future wealth.

4. Steal. Some people spend years trying to steal money through the Internet, with investment schemes or by embezzling company money. Yet just like bank robbers, they usually get caught and live out their lives in prison.

5. Earn it. Yes, the honest approach is actually the easiest and the most likely to work for you. You provide a service or product that people need and you deliver it. The greater your “service capacity,” the richer you get!

What Is Your Service Capacity?

Capacity: The maximum limit. The greatest amount possible. The highest quality possible.

Service: A valuable act or useful product that you provide to others.

How much service can you produce? It doesn’t matter if you are providing it or not. What are you capable of providing?

For example, two auto repair shops in the same town can fix your car’s engine. But one of the repair shops can also paint your car and replace your tires. It has a greater service capacity than the other shop. Therefore, it has the capacity to earn more money.

Organizations thrive or die based on their service capacity. The same principle applies to you as an individual.

“The greater the investment in more service capacity, the greater the ability to get more service capacity utilized.

“The greater the service capacity utilized, the greater the service delivered.

“The greater the service delivered, the greater the income.” — L. Ron Hubbard

Based on this quote, you can see a formula for earning more money:

1. Invest in your service capacity.

2. Get your service capacity used.

3. Deliver more service or more products; or provide a better service or better products.

4. Increase your income.

It seems to me that providing a great service could be a permanent improvement for someone. What are your thoughts?

“A valuable act or useful product that you provide to others.”
What an invaluable strategy to increase one’s income! Thanks for the thought. :-)

Financial outcomes are directly tied to market dynamics and principles. For instance, what exactly makes an act valuable? By understanding that value is a by-product of demand, then one can begin to create a profitable direction. Demand simply means that people want it. High demand means a lot of people want it, or a few people want it very badly (willing to exchange a lot of resources for it). Demand is directly tied to people. I think sometimes we miss that. The question is, what do a lot of people want very badly over a long period of time? If you can figure that out, you’ll probably be a successful financialneur (it’s a new word I made up…just now).

“It seems to me that providing a great service could be a permanent improvement for someone. What are your thoughts?”

Being able to consistently, and professionally, provide a service that is in high demand is definitely a life-time improvement, or at least an improvement that lasts as long as that skill is in demand.

There are few things in life that can consistently provide a high-rate of return. A marketable skill is definitely one of these methods.

One note to think about: income does not matter if there is no profit, and profit can only come about by lowering costs. Thanks for making me think :-)

Any further thoughts?

-Nate